Freebets boosting marketing capabilities in Web3 sports predictions
What can freebets do for your app?
When apps start integrating Azuro, they often wonder how they can make the most out of our protocol and climb to the top of frontend dashboards. One of the tools Azuro has created to help the apps do that is the Freebet smart contract.
It is meant to enhance user engagement and retention through well-crafted marketing campaigns that consist in giving (literally) free bets to the users who need extra motivation to keep enjoying the platform.
Freebet contracts are deployed specifically for each app and cannot be accessed or used by anyone else. Once a freebet contract is created, it’s given to the app together with the access to the Freebet Admin Panel from which the app is then able to control who receives freebets and how much.
To start giving out freebets to its users, an app should first top up the freebet contract by sending the funds to its address. Only then can you start adding user wallet addresses together with the freebet amount to the new freebet campaign (it’s also best to add minimum odds for which the freebet can be placed to the csv file containing user addresses of the lucky freebet receivers).
Creating a successful freebet campaign is a matter of knowing your users. These are simply some general directions you might start out with:
- Event-based promotions: Distribute freebets during major sports events: this keeps users engaged and increases their activity during high-interest periods.
- Loyalty rewards: Give out freebets to loyal users based on their activity level or betting volume.
- Reactivation campaigns: Target users who haven’t placed bets in a while by offering them a limited-time freebet. This can reignite their interest and encourage them to return to the platform.
How would a freebet enter your calculations, then?
Let’s imagine you have an app and a user called Jonny whose activity is suggesting he (and you as well) might benefit from a freebet.
Here’s what happens when you add his wallet address (0x…), freebet amount (let’s say, 5 USDT), and minimum odds amount (1.5) to the new campaign in your Freebet Admin Panel and hit Submit.
- The contract sends a 5 USDT freebet to Jonny.
2. Jonny sees it when he opens your app and connects his wallet. He can use this 5 USDT freebet only as a whole to place a bet on any event with odds of 1.5 or higher.
3. Decision point — Does Jonny use the freebet?
3.1. If Jonny places this freebet on an even with 1.5 odds:
➡ The process moves to the next decision point to check if Jonny wins the bet.
3.2. If Jonny does not use the freebet before it expires:
➡ The 5 USDT goes back to your freebet contract.
4. Decision point — Did Jonny win?
4.2. If Jonny wins the bet:
➡ Jonny gets the profit from the bet, which is not the same as a usual payout for an ordinary bet. In this case, if the payout was supposed to be 7.5 USDT (considering the odds of 1.5), Jonny receives the profit of 2.5 USDT (7.5–5).
The initial 5 USDT freebet amount is returned to your freebet contract.
4.3 If Jonny loses the bet:
➡ The 5 USDT goes to the Liquidity Pool, contributing to the affiliate revenue; you receive 70% in affiliate revenue from this loss.
What this means for your revenue
Assuming you issue 100 freebets, each worth 5 USDT, here’s a potential scenario using very coarse numbers:
- Total freebets issued: 100 freebets x 5 USDT = 500 USDT
- Freebets used by users: 80% (80 freebets used)
- Winning rate of bets: 40% (32 users win, 48 users lose)
- Affiliate revenue: 70%
Calculations:
- Unused freebets return to your freebet contract (which you can then withdraw): 20 freebets x 5 USDT = 100 USDT
2. Freebets used:
- Winning: 32 freebets x 5 USDT = 160 USDT (returned to the freebet contract)
- Losing: 48 freebets x 5 USDT = 240 USDT (goes to the Liquidity Pool)
3. Affiliate revenue from losses: 240 USDT x 70% = 168 USDT
All-in-all:
- Returned to Freebet Contract: 100 USDT (not used) + 160 USDT (used and returned) = 260 USDT
- Affiliate Revenue: 168 USDT
💎 Conversion rates (users who start betting with their own money) for retained users might be around 20% to 50%, depending on the app’s effectiveness in engaging and converting users.
Adding to these rather coarse calculations the amount of users who come back to place bets with their own money after using a freebet, the apps are able to create a rather attractive user acquisition / reactivation system by crafting well-researched freebet marketing campaigns.
